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In 1996, the UK market for industrial valves was
worth an estimated £995.2m. This was an increase of 29.2 percent on the 1992
figure of £770.5m. Most of this growth was generated in the later years
of this period, as investment was scaled down by the customers of the valve
industry, during the recession of the early 1990s.
Industrial valves
are used as flow regulators for pipelines, through which liquids, gases and
semi-solids are transported. The main customers for industrial valves are drawn
from a wide range of public and private sector industries. Domestic demand is
growing relatively slowly, as very few of the many markets for industrial
valves are expanding at faster than the annual average replacement rate. Much
needed infrastructure investment by the water utilities is expected to benefit
the industry, but this has been slow to materialise.
UK manufacturers,
however, are becoming less dependent on sales to their domestic markets,
although these remain very important, as there is increasing demand from world
markets, particularly countries in central and eastern Europe, India and China,
etc. These states are rebuilding, or adding to, their public utilities and
industrial infrastructures. Other areas, such as Latin America, with their new
found economic stability, also have some very big investment plans, to develop
their infrastructures. Overseas sales offices and occasionally manufacturing
facilities, usually joint ventures, have been installed in the most promising
regions.
These are capital intensive industries, which require large
numbers of valves for the initial installation. However, most valves have a
long life, and are not disturbed, unless there is a malfunction. Consequently,
the markets do not grow very rapidly, unless totally new investments are being
made, or existing facilities are upgraded with more modern equipment.
Prospects for the domestic market over the next few years are of relatively
slow growth, although there are some areas of demand. For example, investment
by the water utilities could exceed the industry norm. In general, however,
because some of the biggest users in the UK, e.g. chemical manufacturers have
stated their intention of building many of their new plants overseas, this will
have a significant impact on local demand. Key Note consequently forecasts a
quite low increase in domestic demand, from £1.01bn in 1997 to
£1.1bn by the year 2001, in real terms.
Text © 1997 Key Note
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Last updated by Duncan Nottage 5th March 1999